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16105 120 MINUTES

1. The process of analysing the environment for the identification of factors which
have impact on or have implication for the business is called:
A) Forecasting B) Assessment
C) Scanning D) Evaluation

2. A monetary policy which tries to contract economic activities during an

expansionary phase and expanding economic activities in a contractionary phase
of a business cycle is:
A) Expansionary monetary policy
B) Contractionary monetary policy
C) Counter cyclical monetary policy
D) Discretionary monetary policy

3. Which one of the following is not a constituent of invisible account of the Balance
of Payment?
A) Foreign travel B) Investment income
C) Merchandise trade D) Transfer payment

4. Which one of the following is not a disadvantage of fixed exchange rate policy?
A) Persistent imbalance in balance of payment
B) Stability in exchange rate
C) Lack of independence in monetary policy
D) Speculation

5. Name of economic system which is dominated by market forces:

A) Capitalism B) Socialism
C) Mixed economy D) Feudalism

6. Net factor income from abroad when deducted from GNP will result in:
A) NNP B) NDP
C) GDP D) Per Capita Income

7. As per terms of WTO, patent rights are available for a minimum of:
A) 12 years B) 14 years
C) 16 years D) 20 years

8. The rate at which a banker is willing to buy foreign currency is:

A) Ask rate B) Bid rate
C) Offer rate D) Cross rate
9. State whether the followings statements are true or false:
I. Economic phenomenon, such as rate of unemployment and inflation are
studied in micro-economics.
II. Fiscal policy deals with manipulation of levels of Government spending
and Taxation.

A) I and II are true B) I and II are false

C) I is true and II is false D) I is false and II is true

10. FEMA was passed in the year:

A) 1991 B) 1999 C) 2000 D) 2001

11. Withdrawal of State from an industry partially or fully is known as:

A) Modernisation B) Liberalisation
C) Globalisation D) Privatisation

12. Scanning the external environment of a business enables it to identify:

A) Opportunities and Threats B) Opportunities and Strength
C) Strength and Weaknesses D) Threats and Strength

13. The apex body of economic planning in India is:

A) Ministry of Planning
B) NITI Aayog
C) Ministry of Economic Affairs
D) Planning Commission

14. The Brettonwood twins comprises of World Bank and:

A) ADB B) ABN-AMRO
C) IMF D) Federal Reserve

15. -------- is defined as systematic assessment of the social impact of the activities of
a business firm.
A) Social audit B) Social responsibility
C) Social interaction D) Social benefit

16. FDI stands for:

A) Foreign Domestic Investment
B) Foreign Direct Import
C) Foreign Duty Inflows
D) Foreign Direct Investment

17. Which Act was replaced with the introduction of Competition Act of 2002?
A) FERA B) MRTP
C) POTA D) SEBI

18. The environment created by application of knowledge which redefine the

boundaries of global business is known as:
A) Social environment B) Technological environment
C) Cultural environment D) Economic environment

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19. The analysis and designing of application systems can be efficiently handled by:
A) Data entry operators B) Computer programmers
C) System analysts D) Computer operators

20. What type of commerce occurs when a firm sells its products over internet to
other firms?
A) B2B B) B2C
C) C2B D) Enterprise commerce

21. The term encryption is associated with:

A) E Commerce B) Data entry
C) Communication of data D) Data processing

22. Which one of the following is not a feature of critical information?

A) Correctness B) Economy
C) Timeliness D) Completeness

23. A system is called ------- when the inputs, process and the outputs are known with
certainty.
A) Probabilistic B) Deterministic C) Open D) Close

24. Accounting system is an example of:

A) Probabilistic system B) Open system
C) Deterministic system D) Closed system

25. Transfer of a negotiable instrument can be effected by:

A) Endorsement B) Delivery of possession
C) Endorsement and delivery D) Noting by notary public

26. The rate at which RBI discounts the bills of commercial banks is known as:
A) PLR B) Bank rate
C) Discount rate D) Reverse repo rate

27. Credit cards are also known as:

A) Plastic money B) Soft money
C) Hard money D) Electronic money

28. Capital goods market deals with:

A) Non-durable goods B) Durable goods
C) Consumer goods D) Necessities

29. Under which of the following stages of product life cycle sales growth tends to
slow down?
A) Declining stage B) Growth stage
C) Maturity stage D) Introduction stage

30. Which one of the following is not a factor while deciding demographic market
segments?
A) Age B) Sex
C) Family size D) Climatic conditions

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31. In BCG matrix a firm enjoying high market share operating in an industry offering
a high growth rate is an example of:
A) Star B) Question mark
C) Cash cow D) Dog

32. Profits reported by enterprises will be the highest in which stage of industry life
cycle?
A) Introduction B) Growth
C) Decline D) Saturation

33. Which one of the following is not a generic strategy as per Porter?
A) Differentiation B) Price leadership
C) Cost leadership D) Cost focus

34. Pick out the one which is not an advantage of outsourcing from the following:
A) Better bargaining B) Self sufficiency
C) Flexibility D) Savings in investment

35. Where exactly we want to place our business pertains to:

A) Our mission B) Our policy
C) Our vision D) Our tactics

36. Merging with a raw material supplier is an example of:

A) Horizontal diversification
B) Vertical diversification
C) Conglomerate diversification
D) Capacity expansion

37. During what stage of strategic management, a firm's specific internal strengths
and weaknesses are determined?
A) Formulation B) Implementation
C) Evaluation D) Feedback

38. Effective strategic planning involves alignment of a firm’s internal competencies

with:
A) Managerial skills B) External environment
C) Communication networks D) Critical success factors

39. A discrete element of organization which is treated separately for strategic

management purposes is known as:
A) Project B) SBU
C) Division D) Department

40. Identify a constituent of legal environment from the following:

A) Resource constraints B) Import restriction
C) Logistics bottlenecks D) Employee turnover

41. The authoritarian leadership style supports:

A) Theory X B) Theory Y
C) Theory Z D) Theory of Laissez fare

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42. Decentralisation of higher order results in:
A) Small organization
B) Multiple decision levels
C) Vertical organization structures
D) Delay in decision making

43. Which one of the following is the last link in the communication process in an
organization?
A) Decoding B) Encoding
C) Selection of channel D) Feed back

44. According to Herzberg’s two factor theory, which one of the following is treated
as a hygiene factor?
A) Recognition B) Promotion
C) Interpersonal relations D) Achievement

45. Pick from the following, one which is not an advantage of MBO:
A) Flexibility B) Clarity in tasks
C) Facilitating smooth change D) Clarity in individual roles

46. The process of adding higher responsibility with an existing job position to make
the job more challenging or demanding is:
A) Job design B) Job enlargement
C) Job enrichment D) Job specification

47. Which one of the following is not an example of downward communication?

A) Promotion orders
B) Transfer policy
C) Performance appraisal report
D) Break down summary

48. Which one of the following selection method is most suitable to assess the
temperament possessed by a candidate?
A) Intelligence test B) Psychological test
C) Skill test D) Knowledge test

49. An interpersonal conflict resolution approach guided by lower level assertiveness

with higher order cooperativeness is:
A) Forcing B) Accommodating
C) Avoiding D) Manipulating

50. The process involved in monitoring the subordinate level performance, comparing
with set targets and suggesting rectification is popularly known as:
A) Organising B) Directing
C) Controlling D) Co-ordinating

51. Zero Base Budget prepared every year falls under:

A) Standing plan B) Single use plan
C) Flexible plan D) Contingency plan

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52. The principle of Henry Fayol which insists that every subordinate should report to
only one superior is:
A) Unity of direction B) Espirit-de-corpse
C) Unity of command D) Scalar chain

53. Composition of various sources of capital in the total capital of a firm is popularly
known as:
A) Capitalisation decision B) Capital structure decision
C) Dividend decision D) Retention decision

54. Time required to recover the initial cash outlay of a project is:
A) Gestation period B) Economic life
C) Payback period D) Project life cycle

55. If net profit after tax is Rs. 3,00,000, retention ratio is 40 % and number of equity
shares outstanding is 1,00,000, what is EPS?
A) Rs. 3 B) Rs. 1.80
C) Rs. 1.50 D) Rs. 1.20

56. While managing working capital, an important principle to be kept in mind is that
liquidity varies inversely with;
A) Risk B) Investment in current assets
C) Profitability D) Cash in hand

57. Current ratio is 3, liquid ratio is 2 and current liabilities are Rs.12,000. What is
the value of inventory?
A) Rs.8,000 B) Rs.12,000 C) Rs.16,000 D) Rs.24,000

58. The proportion of equity in the capital structure is ¼ and that of debt is Rs. ¾. It’s
cost of equity is 12 % and after tax cost debt is 8 %, what is WACC?
A) 6% B) 7% C) 8% D) 9%

59. Pick the one which is not an assumption of MM approach to capital structure:
A) Market is imperfect
B) There exists no corporate taxes
C) Money can be borrowed at risk free rates
D) No floatation costs exist

60. If the risk and return associated with an asset is borne by lessee during the entire
economic life, it is the case of:
A) Outright purchase B) Sale and lease back
C) Operating lease D) Financial lease

61. Loss of bad debts reverts back to the client in the case of:
A) Reverse factoring B) Recourse factoring
C) Direct factoring D) Non-recourse factoring

62. A transaction where financial securities are issued against a pool of assets is called:
A) Securitisation B) Credit Default Swaps
C) Credit Linked Notes D) Total Return Swaps

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63. A firm’s earnings before interest is Rs. 2,40,000 and its interest burden is Rs.
80,000 p.a.What is the degree of financial leverage?
A) 2 B) 1.5 C) 1 D) 0.5

64. Which one of the following sources of capital doesn’t involve floatation cost?
A) Retained earnings B) Equity capital
C) Preference capital D) Debentures

65. Revenue is required to be recognized at the point of sale. Name the accounting
principle followed above:
A) Matching B) Revenue recognition
C) Cost D) Going concern

66. Which International Accounting Standard deals with the preparation of cash flow
statement?
A) IAS 1 B) IAS 3 C) IAS 7 D) IAS 9

67. Closing entries are recorded in:

A) Ledger B) Profit and loss a/c
C) Balance sheet D) Journal proper

68. Sinu’s capital as on 1.1.2014 was Rs. 50,000, interest on drawings Rs. 5,000,
interest on capital Rs. 8,000, drawings Rs. 15,000 and profit for the year 2014 is
Rs. 8,000. What is his capital balance as on 31.12.2014?
A) Rs. 55,000 B) Rs. 46,000
C) Rs. 64,000 D) Rs. 72,000

69. Copyrights are:

A) Tangible assets B) Fictitious assets
C) Intangible assets D) Floating assets

70. The balance of Income and Expenditure account is:

A) Closing cash balance
B) Profit or loss
C) Closing capital balance
D) Surplus or deficit

71. If original cost of an asset bought on 1.4.2013 is Rs. 3, 00,000 and is subject to
depreciation @ 15 % on WDV basis, what will be the WDV of the asset as on
31.3.2015?
A) Rs. 2,16,750 B) Rs. 2,85,000
C) Rs. 2,55,000 D) Rs. 2,45,000

72. For a liability which can be determined with substantial accuracy:

A) A reserve should be created
B) A provision should be created
C) An absolute liability should be created
D) An appropriation of profit should be made

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73. The market value of assets of a company is Rs. 22,00,000 and the amount required
to settle outside liabilities amounted to Rs.4,00,000. If the number of equity
shares outstanding is 2,00,000 what will be its intrinsic value?
A) Rs. 11 B) Rs. 18 C) Rs. 9 D) Rs. 8

74. Excess of purchase consideration over net asset value of the vender company is
recognized in the books of the purchasing company as:
A) Goodwill B) Capital Reserve
C) Profit on acquisition D) Loss on acquisition

75. State whether the following statements are true or false:

I. Loss on realization is transferred to the capital account of the partners in
the ratio of their capitals.
II. The liability of the partners are joint and several

A) I is true and II is false B) I is false and II is true

C) Both I and II are true D) Both I and II are false

76. Opening bill receivable balance is Rs. 2,00,000. Bills received during the year
amounted to Rs. 3,00,000 bill matured and duly met during the year amounted to
Rs. 4,20,000, bill dishonoured and returned amounted to Rs. 30,000. What is the
total value of outstanding bills as on the closing date?
A) Rs. 80,000 B) Rs. 60,000
C) Rs. 50,000 D) Rs. 40,000

77. Which one of the following accounts/statements is not prepared by Electricity

Companies under Double Accounts System?
A) Revenue A/c
B) Receipts and Expenditure on Capital A/c
C) General Balance Sheet
D) Valuation Balance Sheet

78. Which of the following is not a source of fund?

A) Issue of shares B) Issue of Debentures
C) Increase in working capital D) Sale of asset

79. Which one of the following is not applicable to a hire purchase contract?
A) It is an agreement for sale
B) Hirer is a bailee and vendor is bailor
C) Title to goods passes on last payment
D) Seller may take repossession upon default of the hirer

80. Midhun purchased goods costing Rs. 4,00,000 for a joint venture business with
Subin. Subin sold 75 % of the goods for Rs. 4,50,000. Balance goods were taken
over by Midhun at cost less 10 %. What is the profit made by the joint venture?
A) Rs. 1,50,000 B) Rs. 1,40,000
C) Rs. 1,60,000 D) Rs. 50,000

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81. What is the accounting treatment of cost of goods sent on consignment in the
books of the consignor?
A) Credited to trading A/c B) Debited to purchase A/c
C) Credited to Purchase A/c D) Debited to trading A/c

82. In a statement of affairs prepared at the time of liquidation of a company

preferential creditors are shown under:
A) List B B) List C
C) List D D) List F

83. Which one of the following is not a method of costing?

A) Process costing B) Unit costing
C) Marginal costing D) Contract costing

84. Stores ledger depicts:

A) Quantity only B) Value only
C) Both quantity and value D) Pending purchase orders

85. If sales is Rs. 6,00,000, variable cost Rs. 4,80,000 and fixed cost is Rs. 60,000,
what will be the break-even point?
A) Rs. 3,60,000 B) Rs. 3,00,000
C) Rs. 2,40,000 D) Rs. 1,20,000

86. In the above question, what will be the margin of safety?

A) Rs. 3,60,000 B) Rs. 3,00,000
C) Rs. 2,40,000 D) Rs. 1,20,000

87. Quick ratio is another name of:

A) Liquidity ratio B) Current ratio
C) Working capital ratio D) Acid test ratio

88. A flow of fund results in:

A) Change in cash only B) Change in working capital
C) Change in capital invested D) Change in sales

89. Purchase budget is an example of:

A) Master budget B) Cash budget
C) Functional budget D) Production budget

90. Material mix variance added with material yield variance gives you:
A) Material cost variance B) Material price variance
C) Material rate variance D) Material usage variance

91. Value of land acquired for constructing factory building is an example of:
A) Sunk cost B) Opportunity cost
C) Discretionary cost D) Notional cost

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92. Which one of the following is added with profit as per financial accounts in order
to arrive at profit as per cost accounts?
A) Over absorption of factory overhead
B) Under absorption of selling overhead
C) Over valuation of closing stock in financial books
D) Under valuation of opening stock in financial books

93. Total liabilities of a business is Rs. 4,50,000 and fixed assets amounted to Rs.
3,60,000.If the current ratio is 3:1, what will be the current liabilities?
A) Rs. 1,00,000 B) Rs. 1,20,000
C) Rs. 30,000 D) Rs. 1,50,000

94. In the above question, if the value of inventories is Rs.45,000 what will be the
quick ratio?
A) 2:1 B) 2.5:1
C) 3:1 D) 1.5:1

95. When work completed and certified is 60 % of contract price, what portion of
notional profit is transferred to WIP reserve?
A) 1/3 B) 2/3 C) 1/2 D) 3/4

96. Which one of the following is not an avoidable cause affecting labour turnover?
A) Poor working conditions B) Unattractive compensation package
C) Marriage of employee D) Shift timings

97. Which one of the following is not a method of overhead absorption?

A) Overtime rate B) Percentage of prime cost
C) Labour hour rate D) Machine hour rate

98. If the inventory turnover ratio is 12 times, what will be the average inventory
holding period?
A) 4 months B) 3 months C) 2 months D) 1 month

99. Portion of materials lost during manufacturing process, which has no realizable
value is:
A) Scrap B) Defective
C) Waste D) Spoilage

100. The technique of costing which uses variance computed for cost control is:
A) Budgetary control B) Standard costing
C) Uniform costing D) Marginal costing

101. A company divides the population of its product users into three groups based on
degree of use. If the researcher then draws a random sample from each user group
independently, then the type of sample is:
A) Random B) Stratified
C) Judgment D) Quota

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102. Which of the following is non-probability sampling?
A) Snowball B) Random
C) Cluster D) Stratified

103. What is the defining characteristic of experimental research?

A) Resistance to manipulation
B) Manipulation of the independent variable
C) The use of open-ended questions
D) Focuses only on local problems

104. Which of these is not a method of data collection?

A) Questionnaires B) Interviews
C) Contemplation D) Observations

105. Which type of research addresses major societal change?

A) Experimental research
B) Action research
C) Social research
D) Historical comparative research

106. Which is the preferred measure of central tendency if the data are severely
skewed?
A) Mean B) Median C) Mode D) Range

107. A statistical test used to compare 2 or more group means is known as:
A) One-way analysis of variance
B) t-test for correlation coefficients
C) Post hoc test
D) Simple regression

108. This is the difference between a sample statistic and the corresponding population
parameter:
A) Standard error B) Sampling error
C) Difference error D) None of the above

109. Where do you provide a step-by-step account of what the researcher and
participants did during the research study?
A) Introduction B) Abstract C) Design D) Summary

110. This is the process of transforming qualitative research data from written
interviews or field notes into typed text:
A) Segmenting B) Coding
C) Transcription D) Memoing

111. When assessing Internet based literature, which of the following is NOT
important?
A) The credibility of the author
B) The authenticity of the site
C) The date of access
D) The layout of the site

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112. Attitudes are best measured using:
A) Closed questions B) Ranking questions
C) Likert’s scale D) Open ended questions

113. When there is no column and no row without assignment. In such case, the current
assignment is:
A) Maximum B) Optimal C) Minimum D) Zero

114. In a CPM/PERT network a dummy activity is necessary when:

A) Two activities have the same starting node
B) Two activities have the same ending node
C) A node does not actually connect to another node
D) When two activities share the same starting and ending node

115. Testing of hypothesis is:

A) Inferential statistics B) Descriptive statistics
C) Data preparation D) Data analysis

116. If the correlation coefficient between X and Y is 0.50, what percentage of total
variation remains unexplained by the regression equation?
A) 25 B) 50 C) 75 D) 100

117. When testing the difference between two proportions, the null hypothesis is
usually stated as:
A) Proportion 1 is greater than proportion 2
B) The population proportions are unequal
C) The population proportions are equal
D) The pooled proportion equals the pooled variance

118. In testing a given hypothesis, the maximum probability with which we would be
willing to risk a Type I error is known as:
A) Type II error B) Confidence Interval
C) Standard Error D) Significance Level

119. In a company, the mean wage of employees is Rs.279.77 and that of median wage
is Rs 279.06. What will be the mode?
A) 277.64 B) 279.77 C) 279.06 D) 277

120. Which of the following represent continuous data?

A) Number of shares sold each day in the stock market
B) Total value of shares sold each day in the stock market
C) Length of 500 bolts produced in a factory
D) Yearly incomes of college professors

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